EY Q3 13 Global IPO Update

Q313 Global IPO update
September 2013
Table of Contents
Section 1 2 3 4 5 6 7 8 9
Content Q313 highlights Global IPO activity trends Regional analysis Industry analysis Stock exchange analysis Pricing range Follow-on activity Withdrawals and postponements Appendices
Page 2
Section
Content
1
2 3 4 5 6 7 8 9
Q313 highlights
Global IPO activity trends Regional analysis Industry analysis Stock exchange analysis Pricing range Follow-on activity Withdrawals and postponements Appendices
Page 3
Q313 saw a 22% decrease in the number of IPOs and a 61% decrease in proceeds, compared to Q213
IPO activity summary
Global IPO activity Q313 Q213 % change (Q-o-Q) -22.3% -60.5% Q312 % change (Y-o-Y) -16.2% -38.3%
Number of deals Capital raised
160 US$18.2b
206 US$46.2b
191 US$29.6b
An additional 37 IPOs are scheduled before the quarter-end that will raise an additional US$6.1b if successful, capital raised will increase by nearly 34% over Q313
Top 20 IPOs accounted for 56.1% of the global capital raised in Q313 One deal with capital raised above US$1b in Q313,compared to 12 deals in Q213 and three deals in Q312
Top three IPO deals (by capital raised) during the quarter
Issuer name
Envision Healthcare Holdings Inc American Homes 4 Rent Frank's International NV
Domicile Country
United States United States United States
Specific Industry
Hospitals REITs Oil & Gas
Exchange
New York (NYSE) New York (NYSE) New York (NYSE)
Proceeds (US$m)
1,110.9 811.8 759.0
% of global capital raised in Q313

6.1% 4.4% 4.2%
Note: The Q313 Global IPO update covers global IPO activity from 1 January to 19 September 2013. Source: Dealogic, EY
Page 4
PE- and VC-backed IPOs decreased in number and proceeds raised compared to Q213
PE- and VC-backed summary
PE-backed IPOs worldwide*
Q313
22 (13.8% of global total) US$4.8b (26.4%)
Q213
% change (Q-o-Q)
-45% -64.1%
Q312
% change (Y-o-Y)
10.0% 21.3%
Top three PE-backed IPOs (by capital raised) during the quarter
Issuer name
Envision Healthcare Holdings Inc Deutsche Annington Immobilien GmbH Sprouts Farmers Markets Inc
Domicile Country
United States Germany United States
Specific Industry
Hospitals Real Estate Management & Development Food and Beverage
Exchange
New York (NYSE) Deutsche Borse NASDAQ
Proceeds (US$m)
1,110.9 738.5 383.0

6.1% 4.0% 2.1%
VC-backed IPOs worldwide*

Q313
Q213
% change (Q-o-Q)
-18.2% -16.7%
Q312
% change (Y-o-Y)
12.5% 27.6%
Top three VC-backed IPOs (by capital raised) during the quarter
Issuer name
RetailMeNot Inc Intrexon Corp Open House Co Ltd
Domicile Country
United States United States Japan
Specific Industry
Internet Software & Services Biotechnology Real Estate Management & Development
Exchange
NASDAQ New York (NYSE) Tokyo (TSE)
Proceeds (US$ m)
219.5 184.0 142.5

1.2% 1.0% 0.8%
Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
*Note: 9 IPOs are backed by both PE and VC, raising US$0.9b in Q313.
Page 5
Emerging markets contributed around half of global IPO activity; majority of global IPOs priced within their initial pricing range
Emerging markets* made up 51% of the global deals and 37% of capital raised in Q313:
BRIC markets raised US$1b (5% of global total) through 19 (12%) deals in Q313 as compared to US$10.9b (24%) through 17(8%) deals in Q213 and US$6.0b (20%) raised through 70 (37%) deals in Q312. Thailand, Singapore and Indonesia were some of the other active emerging markets during this quarter. 92% of global IPOs priced within or above their initial filing range in Q313, slight increase from 88% in Q213. The majority of the IPOs (83%) were priced within their initial filing range, lower than the historical 10-year average of 86%. 9 % of IPOs were priced above their initial filing range and 8% of IPOs were priced below their initial filing range.
Pricing:

Withdrawals and postponements:
There were 29 postponed or withdrawn IPOs in Q313, compared to 40 in Q213 and 48 in Q312. There was one IPO listing from SOE privatization in Q313 New Zealands power company Z Energy Limited, raising US$0.7b. There were 761 global follow-on offerings, raising US$98.1b in Q313 as compared to 895 deals raising US$153.0b in Q213 and 736 deals raising US$152.5b in Q312. Follow-on offerings constituted 76% of global equity capital markets activity in Q313 by capital raised, while IPOs represented 14%. Convertibles accounted for 10%.
State-owned enterprises (SOEs):
Follow-on offerings:
*Please
see the Appendix for the definition of emerging markets. Based on the listed company domicile. Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 6
Q313 key highlights: geography, industry and exchange

Geographical analysis
By number of IPOs:
Industry analysis
By number of IPOs:
Exchange analysis
By number of IPOs:
Asia Pacific issuers maintained their dominance in deal volume, accounting for 49% of the total deals in Q313, followed by North America, which accounted for 30% of the total deals. The market shares of EMEA, and Central and South America were 18% and 4% respectively. By country, the US, Greater China* and the UK led the pack with 42, 16 and 10 deals respectively.
The top three sectors accounted for 41% of total IPO deals. Health care (23 deals) High technology (22 deals) Energy (21 deals)
By capital raised:
NASDAQ was the most active exchange, with 24 IPOs, closely followed by NYSE with 23 IPOs. The two accounted for 29% of the total number of deals. Among stock exchanges from Asia Pacific, Hong Kong Stock Exchange was the most active with 12 IPOs.
By capital raised:
The top three sectors accounted for 69% of total deal value Energy (US$5.6b) Real estate (US$4.6b) Health care (US$2.3b) Average deal size during this quarter stood at US$114m. The energy sector had an average deal size of US$266.8mhighest among all sectors.
By capital raised:
North America was at the top in terms of capital raised, accounting for 48% of the global total. Asia Pacific and EMEA were ranked second and third with 30% and 13% share respectively, while Central and South America accounted for 9%. By country, the US, Singapore and Greater China* were the top three countries in Q313 with 45% (US$8.2b), 9% (US$1.7b) and 5% (US$0.9b) respectively.
The two exchanges in the US NYSE and NASDAQ accounted for 51% of the capital raised globally. NYSE was the top grosser of Q313 raising US$7.2b (40% of the total capital raised globally). NASDAQ (US$2.1b) and Singapore Stock Exchange (US$1.5b) were ranked second and third respectively accounting for 11% and 8% share.
.
*Greater China includes Mainland China (9 deals raised US$578m), Hong Kong (6 deals raised US$84m), Macau (1 deal raised US$283m) Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 7
Q313 key highlights: top 20 IPOs

Overview

The top 10 IPOs together raised US$6.4b, which represents 35% of global proceeds. In Q313, the top 20 IPOs raised US$10.2b, contributing 56% of global proceeds, as compared to US$46.2 (63%) and US$29.6 (71%) in Q213 and Q312 respectively. The drop in proceeds in Q313 is attributed to a fall in IPOs raising more than US$1b. There was one such deal in Q313 compared to 12 listings in Q213 and three in Q312. In line with recent trends, NYSE has been the most active exchange for top IPOs in Q313, accounting for nine of the top 20 IPOs. Among the nine deals, two were cross-border listings, one each from Peru and Bermuda. 17 of the top 20 listed on their home exchange (as their primary exchange). Two larger listings are expected on NASDAQ in the last week of September, with expected deal sizes of US$690m and US$320m respectively. North America emerged as the highest contributor to IPO activity in Q313 (nine deals raising US$5.1b 50% of global proceeds). This is in stark contrast to the pattern seen in Q213 as well as in Q312 where more of the funds raised in top 20 IPOs came from Asia Pacific. Only one deal from the BRIC nations featured in the top 20 club in Q313. Nine out of the top 20 deals were from emerging markets, accounted for 36% of proceeds raised by the top 20 deals. The share of emerging markets in proceeds raised by top 20 deals in Q313 was lower than in Q213 (45%) and Q312 (51%). Energy and real estate were the top sectors in Q313, raised US$4.0b (eight deals) and US$3.6b (seven deals) respectively. However, in both Q213 and Q312, industrial and financial led the top 20 list. Five of the top 20 deals were private equity-backed IPOs in Q313. This compares to nine IPOs in Q213 and two IPOs in Q312.
Key exchanges
Key regions

Key sectors
PE/VC backed
* Data up to 19 September 2013, 9am IST Source: Dealogic, EY
Page 8
Key factors and Q413 Outlook

Factors driving Q313 activity
Global IPO activity is expected to be strong in Q413, driven by global economic recovery
Global IPO activity fell in Q313, with projected activity to be 197 deals with proceeds around US$24.4b. This is 4% down by deal numbers and 27% by deal value compared to Q213. It is worthwhile to note that Q3 is traditionally the least active quarter compared with Q2 and Q4. IPO activity in Q313 was a story of two halves. In July and August, signs of improving macroeconomic conditions, particularly in the developed economies, coupled with continuing loose monetary conditions globally, saw lower market volatility and supported public listings. Market conditions turned in September as investor concern grew on impending monetary tightening by the US drove volatility higher and putting risk assets, especially in the emerging markets, and IPO activity under pressure.
Despite a comparatively quiet third quarter, global IPO activity is expected to lift through the remainder of the year and into 2014. The uplift in activity will vary from region to region both in terms of timing and pace.
Maria Pinelli, Global Strategic Growth Markets Leader
Q413 outlook
Global IPO activity is expected to lift in Q413. Global IPO volume could reach 200 250 listings, generating total proceeds of around US$30-40b. This would be in line with Q412 levels. The uplift in IPO activity could vary from region to region, both in terms of timing and pace of activity. The outlook for emerging markets is softer due to slower economic growth having a negative impact on institutional investors appetite for new listings. Conversely, improving economic conditions and investor interest in developed market equities could support relatively firm IPO activity in major markets including the US, Germany and the UK. PE-backed IPO deals are expected to rise in Q413, given that filings have been increasing and there is a significant pipeline of PE-backed companies waiting to go public. In addition, better valuation and solid aftermarket performance of recent listings is an important catalyst for PE investors to take companies public.
Note: The Q313 Global IPO update covers global IPO activity from 1 January to 19 September 2013
Investors have been encouraged by rising valuations but moving forward, pricing remain a critical concern. In this market, more than ever, firms need strong brand names or earnings track records to obtain appropriate pricing and secure investor support.
Maria Pinelli, Global Strategic Growth Markets Leader
Page 9
Section 1
Content Q313 highlights
2
3 4 5 6 7 8 9
Global IPO activity trends

Regional analysis Industry analysis Stock exchange analysis Pricing range Follow-on activity Withdrawals and postponements Appendices
Page 10

Global IPO activity (2005-2013YTD)
400 350
IPO activity saw a fall in Q313, both in terms of deal numbers and capital raised compared to Q312
2500
For 2013YTD, while the number of IPO deals decreased by 17%, the proceeds raised decreased by only 2%, when compared to the first nine months of 2012. When compared to Q213, while the number of deals in Q313 decreased by 22%, the proceeds declined by 61%. The significant drop in IPO proceeds was primarily because Q213 saw 12 mega deals (with capital raised more than US$1b) compared to only one deal, US based Envision Healthcare Holdings Inc which raised US$1.1b in Q313. September 2013 has, so far, seen 21 IPO listings raising US$1.5b. Mexicos Controladora Vuela Compania de Aviacion SAB de CV, which raised US$346.1m, is the largest deal so far. 37 more listings worth US$6.1b are expected by the end of the month. We expect China Huishan Diary Holding Co Ltds US$1.3b listing, USs Premier Inc US$690m and UKs Foxton Group plc US$558m IPO listings to be completed by end of September.
Capital raised (US$b)
300 250 200 150 100 50 $ 105 0 2005 2006 2007 2008 2009 2010 2011 2012 2013* $ 159 $ 214 $ 99
2000
1379 1111
1500
1165
889 678 277 970 637
$ 46 $ 153 $ 141 $ 91 1000
529 500
$ 89 0
Number of IPOs
Capital raised during Q1-Q3 (US$b) Number of IPOs during the year
Capital raised during Q4 (US$b) Number of IPOs during Q1-Q3
Quarterly IPO activity (2012-2013YTD)

242
Monthly IPO activity (2012-2013YTD)

206 163 160 250 60 200 180 Capital raised (US$b) Number of deals 160 140 87 92 95 77 73 43 53 74 61 65 79 49 57 57 56 71 47 21
$2 $4 $12 $13 $22 $8 $10 $3 $16 $17 $8 $12 $9 $8 $8 $15 $15 $16 $11 $6 $2
204 40
Number of IPOs
191
200
200 150 100
50 40 30 20 10 0 Jan'12 44
20 $18 0 Q3'13* Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 $44 $30 $37 $24 $46 $18
92
120 100 80 60 40 20 0
73
50 0
Jan'13
June'12
July'12
May'12
May'13
Nov'12
Sep'12
Oct'12
Jul'13
Capital raised (US$b) *Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Number of deals
Page 11
Sep'13*
Dec'12
Aug'12
Jun'13
Apr'13
Feb'12
Feb'13
April'12
Aug'13
Mar'12
Mar'13
Number of IPOs

Year-to-date equity market returns Major indices
50% % Equity market returns year-to-date 40% 30% 20% 10% 0% -10% -20% Nikkei NASDAQ S&P 500 9% 22% 25% 16% 21% 42%
Diverging performance for the developed and emerging markets despite improving global macroeconomic conditions
2012 YTD return 25% 14% 6% 12%
2013 YTD return
13% 4%
10% 0%
9%
-9% DAX 30 FTSE 100 Hang Seng KOSPI IBOVESPA
*Data updated as 19 September 2013. Source: S&P Capital IQ
MSCI World Index market performance

1.600 1.500 1.400 Index value 1.300 1.200 1.100 1.000 900 800 Jan-04-2010 Sep-04-2010 Mai-04-2011 Jan-04-2012 Sep-04-2012 Mai-04-2013
*Data updated as on 19 September 2013. Source: S&P Capital IQ
OECD Leading indicator growth vs. number of IPOs

600 500 6
OECD Leading Indicator y/y growth rate
5
4
Number of IPOs
400 300 200 100 0 Q1'13 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q213 Q313 Q413 Q114
3 2 1 0 -1 -2
Number of IPOs
OECD +6 Major Emerging Economies Leading Indicator
Page 12

Annual median deal size by region, US$m
140
In 1H13, the median value rose globally, when compared to the last two years, with an exception of the Asia-Pacific region
Quarterly median deal size by region, US$m
120
100 80
60
40 20
0
Americas EMEIA 2011 2012 Asia-Pacific 2013 YTD
100 90 80 70 60 50 40 30 20 10 0
Median deal value US$m
Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q1'13 Q213 Q313
Asia-Pacifc
Americas
EMEIA
All
Median deal values trended higher for Americas and EMEIA between 2011 to 2013YTD but trended lower for Asia-Pacific, reflecting smaller deal sizes in AsiaPacific.
Median deal values rose during the year for Americas and EMEIA. For Q413, we expect median deal values to rise for all 3 regions while market and investor confidence builds.
*Data updated up to 19 September 2013. Source: Dealogic
Page 13
Section 1
2 3 4 5 6
7 8 9
Global IPO activity trends Regional analysis Industry analysis Stock exchange analysis Pricing range
Follow-on activity Withdrawals and postponements Appendices
Page 14
Regional Analysis
Asia Pacific and North America accounted for close to 80% of global IPO activity, both in terms of deals and capital raised in Q313
Regional share by capital raised (US$b)
50 45 40 35 30 25 20 15 10 5 0
Regional share by number of IPOs
7,8
200
7 5 29 63 58
Proceeds (US$b)
Number of IPOs
6
48 28
13,8 5,0 4,1 1,2 19,2 6,7 1,6 8,8 2,5 5,4
150 100 50 0
32
125 78 78
17,9
Q3'12
Asia Pacific North America
Q2'13
Q3'13*
Q3'12
Asia Pacific North America
Q2'13
Q3'13*
Europe, Middle East and Africa Central and South America
Europe, Middle East and Africa Central and South America
In Q313, while Asia-Pacific continued to lead in terms of the number of IPOs (accounting for close to 50% of the global total), North America led in terms of total proceeds raised accounting for 48% of global proceeds while Asia-Pacific had a 30% share. Across all regions, IPO activity remained soft in Q313 compared to Q213. In terms of proceeds raised, Central and South Ame rica saw lower activity (80% decline), followed by Asia-Pacific (70%), q-o-q. However, in terms of deal volume, while the number of IPOs in the Asia-Pacific and Central and South America regions remained almost the same, the EMEA and North America recorded a decrease of 52% and 24%, respectively. Compared to Q312, while capital raised rose by 108% and 115% in EMEA and North America respectively in Q313. Asia -Pacific and Central and South America saw a decline of 72% and 69%, respectively. However, in terms of number of IPOs, while Asia Pacific and EMEA recorded a decrease of 38% and 13%, respectively, the deal volume increased in North America by 66% and in Central and South America by 20%.
*Data up to 19 September 2013, 9am IST. Based on the listed company domicile Source: Dealogic, EY
Page 15
Q313 Regional analysis by country

North America
US Bermuda 0,3 0,2 8,2
Across countries, the US dominated the global IPO landscape, by deal numbers and proceeds raised
Central and South America
Mexico
Peru Brazil
Asia-Pacific
Singapore Gr. China 0,9 0,8 0,7 0,4 0,3 0,3 1,7 Germany Ireland
EMEA
0,7
0,7 0,4
0,6
0,4 0,3 0,1 0,1
By capital raised
Canada
0,4
New Zealand
Thailand Indonesia Australia Japan
Iran
UK Norway South Africa
The US led in terms of total proceeds raised with seven of the top 10 IPOs, followed by Singapore and New Zealand. There was one deal with capital raised above US$1b. The top three IPOs, accounting for 14.7% of capital raised globally, were from the US.
US Canada Bermuda 1 5
42
Mexico Jamaica Brazil Peru 1 1
2 2
Gr. China
16
10 9 8 8 8 6 5 5
UK Poland Ireland South Africa Israel Belgium Ukraine Norway 1 1 2 2 2 3 4
10
Singapore
India Thailand Japan Indonesia Australia South Korea Malaysia
Number of deals
The US dominated the global IPO landscape in terms of deal number, far exceeding the total in Greater China* and the UK, which ranked second and third respectively. The most active sub-areas in the US were West and Southwest, accounting for 12 and nine deals respectively. Developing countries accounted for 50.1% of the number of deals globally and 37.4% of the total global capital raised.
*Greater China includes Mainland China (9 deals), Hong Kong (6) and Macau(1) issuers. Based on the listed company domicile. Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 16
Regional analysis: by emerging markets

Annual IPO activity in emerging markets Title
240 1044 972 851 1.100 900 700 501 120 80 40 $223 0 2007 2008 2009 2010 2011 2012 $66 $95 $197 $103 $61 $35 2013* 413 256 518 500 300 100 -100 200 160
Average deal size decreased by 59% on a q-o-q basis.

For 2013 YTD, the emerging markets accounted for 39% of global proceeds raised and 48% of completed IPO deals globally. However, in Q313, these countries accounted for 37% of total proceeds and 51% of total deals. IPO activity in emerging markets saw a huge dip (64%) in terms of proceeds raised in Q313 compared to the previous quarter. Q213 saw four billion-dollar deals (with Brazilian company, BB Seguridade Participacoes SA raising US$ 5.7b) compared to none in Q313. The largest deal from the emerging markets during Q313 raised US$475.9m. Compared to Q312, IPO activity in Q313 declined by 58% and 42% in terms of proceeds raised and deal volume, respectively, primarily due to a decline in IPO activity in China, Malaysia and Mexico. In Q312, the three countries together accounted for 80% of total proceeds raised in emerging countries and 50% of deal volume.
Number of IPOs
Quarterly IPO activity in emerging markets

100 319 329 261 194 148 108 51 $30 0 Q3'13* Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 $62 $46 $85 $23 $31 $10 $2 36 $1 58 $8 $27 $60 $32 $35 $44 $86 $30 $36 $17 $19 $9 $18 $16 $19 $9 $19 109 210 203 222 218 218 199 173 125 154 140 99 84 91 81 400 350
80
60
250 200 150 100 50 0
194
40
20
$7
*Data up to 19 September 2013, 9am IST. Based on the listed company domicile. Source: Dealogic, EY
Page 17
Number of IPOs
269
262
300
Industry analysis
The energy sector raised 31% of global proceeds in Q313

Q3'13 Energy Real estate Health care Industrials Technology Financials Retail Media and entertainment Consumer staples Materials Consumer products and services Telecommunications
5,6 1,7 4,6 2,5 2,3 2,8 1,4 10,6 0,9 1,3 0,9 0,8 1,3 0,7 0,8 0,7 0,6 0,3
Number of IPOs
Q3'13 Healthcare Technology Energy Real estate Industrials Financials Materials Retail Consumer staples Media and entertainment Consumer roducts and services Telecommunications
2 6 6 8 16
Q3'12
Q3'12
23 10 22 20 21 16 20 14 19
33
5,1
9 9
32
16
15
2,4
0,0 0,5 0,0 0,1
6 12
*Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 18
Stock exchange analysis: summary

US exchanges
36% of number of deals and 58% of capital raised Key regions/exchanges during the quarter US: remains the key region accounting for 51% of global proceeds
Asia Pacific and Americas exchanges dominated the global IPO market by deals and capital raised respectively
Asia-Pacific exchanges
47% of number of deals and 30% of capital raised
EMEA exchanges
17% of number of deals and 12% of capital raised
Greater China: HKEx and Growth Enterprise Markets only active exchanges
Europe: led by the UK, raised 6% of global proceeds:
US exchanges (NYSE and NASDAQ) raised US$9.2b in 47 deals In Q313, 47% of deals and 41% of proceeds raised in the US were backed by PE and/or VC firms With US$7.2b raised in 23 deals, the New York Stock Exchange was the highest grossing exchange Heath care (15 issuers raising US$2.0b) and Energy (eight issuers raising US$3.1b) were the two most active sectors
Hong Kong Stock Exchange (HKEx) accounted for the most deals in Asia Pacific and ranked third by capital raised in the Asia Pacific region (US$957m via 12 deals)
Singapore: emerged as a key exchange this quarter

Witnessed four deals that raised $1.5b Accounted for 28% of proceeds raised in Asia Pacific
Central and South America: led by Mexico, raised 6% of capital globally
Japan: Slower activity q-o-q in terms of deals and capital raised
Saw 24 IPOs raising US$1.7b in Q313 (15% of global number of deals); a decrease of 43% in deal count and 63% in the capital raised compared to Q213 Deutsche Bourse had the highest proceeds raised across European exchanges with US$738.5m raised in one IPO offering. London Alternative Investment Market (AIM) had the highest number of IPOs across European exchanges; ranked third globally by number of deals (14) raising US$389m.
Seven deals that raised US$288.8m compared to US$5.8b via 10 deals in Q213
Middle East and Africa: Stronger activity q-o-q in Middle East but slower in Africa
Although the exchanges accounted for only 3% of the global deal count, the average issue size was US$227.5m compared to the global average issue size of US$114m in Q313.
Australia and New Zealand: Slower activity in terms of deals and dollars
The region witnessed seven deals raising US$1.1b compared to US$2.2b via 13 deals in Q213
Middle East exchanges raised US$445.6m in three IPOs in Q313 compared to US$53.9m in four IPOs in Q213. African exchanges raised US$28.6m in one IPO during this quarter compared to US$95.1m in five IPOs in Q213
*Data up to 19 September 2013, 9am IST. Source: Dealogic, EY. Based on the listed companys stock exchange
Page 19
Stock exchange analysis

Q313
New York (NYSE) NASDAQ Singapore (SGX) Australia (ASX) Hong Kong (HKEx) Deutsche Borse Mexican (BMV) Thailand (SET) All other exchanges 7,2

Tokyo (TSE)
Q312
8,5
6,7 2,4
2,1
1,5 1,0 1,0 0,7 0,7 0,7 3,4
New York (NYSE)

Bursa Malaysia (KLSE) Hong Kong (HKEx) Shenzhen - ChiNext (SZSE) NASDAQ Shanghai (SSE) Shenzhen - SME board All other exchanges
1,8
1,6 1,4 1,4 1,4 4,4
NASDAQ New York (NYSE) London (AIM) Hong Kong (HKEx) Bombay SME Indonesia (IDX) Singapore Catalist Australia (ASX) Thailand (SET) KOSDAQ Singapore (SGX) All other exchanges 5 6 7 9 14 12
24
No. of IPOs
Shenzhen - Chinext (SZSE) Warsaw NewConnect Shenzhen - SME board New York (NYSE) NASDAQ Hong Kong (HKEx) Indonesia (IDX) Shanghai (SSE) London (AIM) 9 8 8
22 17 15 13 13 12
23
5
4 43
All other exchanges
74
*Data based on domicile of the exchange, regardless of the listed company domicile. *Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 20
Pricing range
More deals were priced above their initial pricing range during Q313 compared to Q213
83% of global IPOs* in 2013 were priced within their initial filing range and 9% were priced above and 8% of IPOs were priced below their initial filing range.
Total number of IPOs 171 200 111 62 43 82 160 257 261 303 279 455 269 372 253 247 182 214 162 181 132 137
92% 82% 72%
10%
10% 1%
10% 1%
14%
10%
7%
3% 2%
10% 3%
10% 4%
9% 2%
7% 3%
7% 3%
6% 6%
6% 5%
4% 3%
7% 7%
3%
8% 5%
11% 4%
7% 4%
6% 9%
12% 5%
8% 9%
19%
6%
Number of deals
62% 52% 42% 32% 22% 12%

89% 90% 89% 86% 90% 74%
95% 87% 85% 89%
90%
91%
88%
89%
92% 85% 83%
87%
85%
89%
85%
83%
83%
2%
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13*
In range
Above
Below
*Chart shows the number of open-price IPOs with deal value above US$50m that is priced above, below or within their initial filing range. For 3% of the IPOs, this range is not applicable. Data up to 19 September 2013, 9am IST. Source: Dealogic, EY
Page 21
Section 1
2 3 4 5 6 7 8
9
Global IPO activity trends Regional analysis Industry analysis Stock exchange analysis Pricing range Follow-on activity Withdrawals and postponements
Appendices
Page 22
Follow-on activity
Follow-on offerings constituted 76% of global equity capital markets activity in Q313 by capital raised, while IPOs represented 15%.
Yearly followon activity
900 800 4.678 5.073 5.077 6.000 5.000 3.390 2.767 2.526 4.000 3.000 2.000 1.000 $553 2007 $552 2008 $842 2009 $642 2010 $469 2011 $507 2012 $405 0 2013*
Number of FOs
700 600 500 400 300 200 100 0
4.214
In Q313, there were 16 deals with capital raised above US$1b 13 from developed markets and three from emerging markets. Seven of the 20 deals were priced in July, three deals were priced in August and 10 deals were priced in September. 29% of the global number of follow on deals and 25% of capital raised were from emerging markets (US$24.8b via 217 deals), with developed markets contributing US$ 73.3b via 544 deals in Q313. The top three stock exchanges by capital raised were New York (US$27.9b via 80 deals), NASDAQ ($8.8b via 81 deals) and London (US$6.7b via 14 deals). The top three industries by capital raised were financials (US$22.8b via 51 follow-on deals), industrials (US$16.6b via 92 deals) and energy and power (US$10.4b via 91 deals).
Quarterly followon activity

300 250 1.631 1.375 1.125 1.183 995 651 100 50 $124 $163 $109 $157 $78 $199 $133 $142 $101 $289 $188 $265 $114 $113 $180 $235 $148 $165 $83 0 Q3'13* Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 $73 $134 $89 $152 $131 $154 $153 $98 0 965 631 628 1.374 1.440 1.181 1.131 1.030 805 520 862 1.735 1.323 2.000 1.600 1.004 712 736 1.200 870 895 761 800 400
200 150
938
Page 23
Number of FOs
1.224
Withdrawn and postponements

Completed IPOs
50%
1,967
756
566
1,367
1,241
837
529
40%
30% 36% 20% 10% 0% 8% 1% 2007 7% 2008 19% 1% 2009 19% 4% 2011 24% 13% 3% 2012 4% 2013*
17% 2% 2010
Postponed IPOs
Completed IPOs
393 546 440 588 242 273 163 78 53 82 142 289
Withdrawn IPOs
293 314 302 484 296 383 291 255 204 242 191 200 163 206 160
100% 90% 80% % of total deals 70% 60% 50% 40% 30% 20% 10% 0%
5% 1% Q1'07 36% 21% 5% 11% 7% 7% 1% 2% Q2'07 Q3'07 Q4'07 Q1'08 5% Q2'08 8% Q3'08 14% Q4'08 8% Q1'09 Q2'09 35% 33% 12% 10% 11% 2% 4% 1% Q3'09 Q4'09 Q1'10 Q2'10 21% 15% 17% 19% 1% Q3'10 2% Q4'10 2% Q1'11 20% 17% 23% 4% Q2'11 5% Q3'11 4% Q4'11 24% 1% Q1'12 6% Q2'12 64% 95%
28%
23% 21% 2% Q3'12 5% Q4'12
Q3'13
13% 6% 1% Q1'13 Q2'13
13% 14% 4%
Postponed IPOs
Withdrawn IPOs
There were six postponed and 23 withdrawn IPOs in Q313. Of the 29 deals: 10 were from the US, three each from Australia, China, and Brazil, and two from Philippines. Six PE-backed; three VC backed. Six from NASDAQ, five from New York Stock Exchange and three from Australian Stock exchange. Five were real estate issuers and four each from industrials and technology issuers. Market conditions was the most popular reason for withdrawing or postponing a listing. In comparison, there were 13 postponed and 27 withdrawn IPOs in Q213. Q312 saw four postponed and 44 withdrawn IPOs. The proportion of postponed and withdrawn IPOs compared to completed IPO deals was highest in 2008, at 43%, whereas the proportion was 27% in 2012 and 17% in 2013*. On a quarterly basis, the proportion of postponed and withdrawn IPOs against completed IPOs was highest in Q408 at 109%. In Q213 and Q313 so far, this ratio of postponed and withdrawn IPOs compared to completed IPOs was 19% and 18% respectively. The ratio of postponed and withdrawn IPOs in Q312 was 25%.
Number of deals
Page 24
Section 1
2 3 4 5 6 7 8 9
Global IPO activity trends Regional analysis Industry analysis Stock exchange analysis Pricing range Follow-on activity Withdrawals and postponements Appendices
Page 25
Appendix: Key global IPO statistics

2010
Number of deals Capital raised (US$) Average deal size (US$) PE-backed IPOs 1367 (142%1) $284.9b (136%1) $208.3m 155 deals, $35.0b
2011
1241 ( 9%2) $169.9b ( 40%2) $136.9m 119 deals, $38.3b
2012
837 ( 33%3) $128.6b ( 24%3) $153.6m 107 deals, $19.4b
2013*
529 $88.8b $167.8m 94 deals, $26.0b
VC backed IPOs
129 deals, $13.7b

Materials (307) Industrial (236) Technology (180) Consumer staples (113) Energy (94) Financials ($80.0b) Industrial ($57.6b) Materials ($38.5b) Energy ($23.2b) Technology ($20.7b) Shenzhen SME (205) Shenzhen ChiNext (116) Australian (92) Hong Kong (87) New York (82) Hong Kong ($57.4b) New York ($34.7b) Shenzhen SME ($30.2b) Shanghai ($27.9b) Tokyo ($14.3b)
4
142 deals, $17.3b

Materials (268) Industrial (199) Technology (149) Consumer products4 (124) Energy (110) Materials ($29.2b) Industrial ($26.4b) Energy ($21.3b) Financial ($15.9b) Technology ($14.7b) Shenzhen ChiNext (128) Warsaw New Connect (123) Shenzhen SME (115) Australian (101) Hong Kong (68) New York ($30.5b) Hong Kong ($25.3b) Shenzhen SME ($15.7b) Shanghai ($15.1b) London ($13.9b)
92deals, $23.2b
Materials (140) Industrial (125) Technology (122) Energy (69) Consumer staples (58) Technology ($23.5b) Financial ($19.4b) Industrials ($19.0b) Energy ($13.1b) Materials ($12.4b) New York (78) Shenzhen ChiNext (74) Warsaw - New Connect(62) Shenzhen (55) NASDAQ (54) New York ($24.0b) NASDAQ ($22.6b) Tokyo ($12.2b) Hong Kong ($11.5b) Kuala Lumpur ($7.6b)
55 deals, $4.5b
Industrial (72) Health care (69) Real estate (64) Technology (58) Financials (56) Real estate ($16.9b) Financial ($14.4b) Industrial ($11.5b) Energy ($10.4b) Health care ($8.7b) NASDAQ (71) New York (70) London AIM (31) Hong Kong (27) Australia (27) New York ($24.1b) NASDAQ ($8.4b) Tokyo ($7.7b) Sao Paulo ($7.7b) Hong Kong ($6.0b)
Top 5 sectors (number of deals)
Top 5 sectors (capital raised)
Top 5 exchanges (number of deals)
Top 5 exchanges (capital raised)
*Data up to 19 September 2013, 9am IST

1Percentage 2 Percentage 3 Percentage
change from 2009 to 2010 change from 2010 to 2011 change from 2011 to 2012
Consumer products includes consumer services Please see Appendix for the list of stock exchanges Source for all charts and tables shown: Dealogic, Thomson Financial, EY
Page 26
Appendix: Q313 top 20 IPOs by capital raised

Issue month Issuer name Domicile Sector Issuer business description Capital raised (US$m) Exchange(s) Type of IPO
August July August July
Envision Healthcare Holdings United Inc States American Homes 4 Rent Frank's International NV Deutsche Annington Immobilien GmbH Z Energy Ltd United States United States Germany New Zealand
Healthcare Real Estate Energy and Power Real Estate Energy and Power
Provider of specialist outsourced medical services within hospitals. Real estate investment trust.
1,110.9 811.8
New York (NYSE) New York (NYSE) New York (NYSE) Deutsche Borse Australia (ASX)
PE-backed IPO
Provider of tubular technologies for 759.0 drilling services. Property management group. 738.5
PE-backed IPO
August
Downstream oil industry operator engaged in marketing of refined 677.0 petroleum products to commercial and retail customers. Owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. Owns, operates, and acquires midstream energy assets. Real estate investment trust. Real estate Investment Trust. Oil company exploring for petroleum and natural gas. 495.2
July
NRG Yield Inc
United States United States
Energy and Power Energy and Power
New York (NYSE) New York (NYSE) Singapore (SGX) Singapore (SGX) New York (NYSE)
August July July July
QEP Midstream Partners LP OUE Hospitality Trust SPH REIT Phillips 66 Partners LP
483.0 475.9 439.7 434.4
Singapore Real Estate Singapore Real Estate United States Energy and Power
Data up to 19 September 2013, 9am IST Source: Dealogic, EY
Page 27
Appendix: Q313 top 20 IPOs by capital raised (continued)

Issue month Issuer name Domicile Sector Issuer business description Capital raised Exchange(s) (US$m) Type of IPO
July
Grana y Montero SAA
Peru
Industrials Energy and Power Energy and Power Real Estate Consumer Staples Real Estate Energy and Power Real Estate Industrials Financials
Engaged in engineering and construction of industrial buildings and infrastructure. Engaged in the production of petroleum and petrochemicals.
430.1
New York (NYSE) Tehran Sao Paulo (BM&F BOVESPA) Dublin NASDAQ Mexican (BMV) New York (NYSE) Singapore (SGX) PE-backed IPO
July
Tamin Petroleum & Petrochemical Investment Iran Co CPFL Energias Renovaveis SA Green REIT plc Brazil Ireland
419.0
July July July
Electric power generation company. 410.5 Renewable Energy: Diversified. REIT Retail food store. Shopping centre real estate trust. Oil and natural gas company. Real estate Investment Trust. Commercial flight airline. 404.6 383.0 379.0 363.2 360.9 346.1
Sprouts Farmers Markets United Inc States Fideicomiso F/00854 July Mexico Fibra Shop United August Athlon Energy Inc States Soilbuild Business Space August Singapore REIT Controladora Vuela September Compania de Aviacion Mexico SAB de CV August Third Point Reinsurance Ltd Bermuda
PE-backed IPO
Mexican (BMV)
New York (NYSE)
PE-backed IPO
Underwriter of reinsurance policies. 317.0
*Data up to 19 September 2013, 9am IST Source: Dealogic, EY
Total capital raised by top 20 IPOs in Q313: Total global capital raised in Q313 : % of top 20:
US$10.2b US$18.2b 56%
Page 28
Appendix: definitions
The data presented in the Q313 Global IPO update and press releases are from Dealogic, Thomson Reuters and EY. The Q3'13 Global IPO update covers global IPO activity from January to 19th September 2013 (data up to 9am India time). For the purposes of these reports and press releases, we focus only on IPOs of operating companies and define an IPO as a companys first offering of equity to the public. This report includes only those IPOs for which Dealogic, Thomson Reuters and EY offer data regarding the issue date (the day the offer is priced and allocations are subsequently made), trading date (the date on which the security first trades) and proceeds (funds raised, including any over-allotment sold). Postponed IPOs, or those which have not yet been priced, are therefore excluded. Over-the-counter (OTC) listings are also excluded. In an attempt to exclude non-operating company IPOs such as trusts, funds and special purpose acquisition companies (SPACs), companies with the following Standard Industrial Classification (SIC) codes are excluded:

6091: Financial companies that conduct trust, fiduciary and custody activities 6371: Asset management companies such as health and welfare funds, pension funds and their third-party administration as well as other financial vehicles 6722: Companies that are open-end investment funds 6726: Companies that are other financial vehicles 6732: Companies that are grant-making foundations 6733: Asset management companies that deal with trusts, estates and agency accounts 6799: Special Purpose Acquisition Companies (SPACs)
We also applied the above SIC exclusion criteria for the follow on activity analysis. In our analysis, unless stated otherwise, IPOs are attributed to the domicile of the company undertaking an IPO. The primary exchange on which they are listed is as defined by Dealogic, Thomson Reuters and EY research. A foreign listing is where the stock exchange nation of the company is different from the company's domicile (i.e., issuers nation). For IPO listings on HKEx, SSE, SZE, WSE, NewConnect, TSX and TSX-V exchanges, we use their first trading date in place of issue date.
Page 29
Appendix: definitions
Geographic definitions:

Asia includes Bangladesh, Greater China, India, Indonesia, Japan, Laos, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand and Vietnam Greater China includes Mainland China, Hong Kong, Macau and Taiwan only Asia Pacific includes Asia (as stated above) plus Australia, New Zealand, Fuji and Papua New Guinea Central and South America includes Argentina, Bermuda, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico, Peru and Puerto Rico Europe includes Armenia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Isle of Man, Italy, Kazakhstan, Luxembourg, Lithuania, Netherlands, Norway, Poland, Portugal, Russian Federation, Spain, Sweden, Switzerland, Turkey, Ukraine and United Kingdom Middle East includes Bahrain, Iran, Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen Africa includes Algeria, Botswana, Egypt, Ghana Kenya, Madagascar, Malawi, Morocco, Namibia, Rwanda, South Africa, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe North America consists of the United States and Canada
Emerging markets include issuers from Argentina, Armenia, Bangladesh, Bolivia, Brazil, Bulgaria, Chile, Colombia, Croatia, Cyprus, Egypt, Ethiopia, Greater China, Hungary, India, Indonesia, Ireland, Israel, Kenya, Kuwait, Kazakhstan, Laos, Lithuania, Malaysia, Mauritius, Mexico, Namibia, Pakistan, Peru, Philippines, Poland, Qatar, Russian Federation, Saudi Arabia, Sierra Leone, Singapore, Slovenia, South Africa, South Korea, Sri Lanka, Tanzania, Thailand, Tunisia, Turkey, Ukraine, United Arab Emirates, Vietnam, Zambia. Developed markets include issuers from Australia, Austria, Belgium, Bermuda, Canada, Denmark, Finland, France, Germany, Greece, Guernsey, Isle of Man, Italy, Japan, Jersey, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and United States. State-owned enterprise (SOE) privatizations refers to former state-owned entities that have completed their IPO listings to become public companies.
Page 30
EY
Assurance | Tax | Transactions | Advisory
About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more of the member firms of EY Global Limited, each of which is a separate legal entity. EY Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com. About EYs IPO services EY is a leader in helping to take companies public worldwide. With decades of experience our global network is dedicated to serving market leaders and helping businesses evaluate the pros and cons of an IPO. We demystify the process by offering IPO readiness assessments, IPO preparation, project management and execution services, all of which help prepare you for life in the public spotlight. Our Global IPO Center of Excellence is a virtual hub which provides access to our IPO knowledge, tools, thought leadership and contacts from around the world in one easy-to-use source. www.ey.com/ipocenter
2013 EYGM Limited. All Rights Reserved. EYG no. CYXXXX ED None
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global EY organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

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Q313 Global IPO update

Number of deals Capital raised

% of global capital raised in Q313

Q313 Global IPO update

% of global capital raised in Q313

VC-backed IPOs worldwide*

% of global capital raised in Q313

Data up to 19 September 2013, 9am IST. Source: Dealogic, EY

Q313 Global IPO update

Withdrawals and postponements:

State-owned enterprises (SOEs):

Q313 Global IPO update

Q313 key highlights: geography, industry and exchange

Q313 Global IPO update

Q313 key highlights: top 20 IPOs

* Data up to 19 September 2013, 9am IST Source: Dealogic, EY

Q313 Global IPO update

Key factors and Q413 Outlook

Q313 Global IPO update

Content Q313 highlights

Global IPO activity trends

Q313 Global IPO update

Global IPO activity trends

Capital raised (US$b)

Capital raised during Q4 (US$b) Number of IPOs during Q1-Q3

Quarterly IPO activity (2012-2013YTD)

Monthly IPO activity (2012-2013YTD)

Capital raised (US$b)

Capital raised (US$b)

200 150 100

Q313 Global IPO update

Global IPO activity trends

2012 YTD return 25% 14% 6% 12%

2013 YTD return

-9% DAX 30 FTSE 100 Hang Seng KOSPI IBOVESPA

*Data updated as 19 September 2013. Source: S&P Capital IQ

MSCI World Index market performance

OECD Leading indicator growth vs. number of IPOs

OECD Leading Indicator y/y growth rate

OECD +6 Major Emerging Economies Leading Indicator

Q313 Global IPO update

Global IPO activity trends

Median deal value US$m

*Data updated up to 19 September 2013. Source: Dealogic

Q313 Global IPO update

Content Q313 highlights

Q313 Global IPO update

Regional share by number of IPOs

Europe, Middle East and Africa Central and South America

Europe, Middle East and Africa Central and South America

Q313 Global IPO update

Q313 Regional analysis by country

Mexico Jamaica Brazil Peru 1 1

UK Poland Ireland South Africa Israel Belgium Ukraine Norway 1 1 2 2 2 3 4

Q313 Global IPO update

Regional analysis: by emerging markets

Average deal size decreased by 59% on a q-o-q basis.

Capital raised (US$b)

Quarterly IPO activity in emerging markets

Capital raised (US$b)

250 200 150 100 50 0

Q313 Global IPO update

The energy sector raised 31% of global proceeds in Q313